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How to make money with bond investments!

Buying bond investments is a less risky vehicle to crescent your money in the capital markets and comes with multifarious advantages.Tax-free savings accounts from your local bank can provide you with this product features. You do not have to pay taxeson the interest payments that are reliquary either monthly or quarterly depending on your account agreement. It is very unlikelythat your bank will default on paying its debt obligations to you. However if it does happen, the bank should devise to file forbankruptcy at a court providing evidence that it is unable to pay its debt obligations, that its financial situation has caused the company to cease operations of the business as an on going matter. Under such a case those who had bond investments in the trustee of that bank or financial institute will be reparated with some of the its sold assets. In the case where the company is rescued by investors so that the operations of the company continue as an on going concerned, you as a bondholder could end up being compensated with the companies equity of shares to the value of your bond holdings.Normally bond interest rates fluctuate on a periodical basis. The only risk that will fardel a bond investor are the expected cashflow streams of payments and the veracious fact that he or she may not be settled in time or approprately. Bond investments are like palladium and gold investments; tenable for they troth a continuum of cash flows rather than profit privation on some occassions. The cashflows are positive on an investors balance sheet and they are compounded monthly, quaterly and yearly depending on the bondcontract. Bonds can be purchased with your monthly savings which can earn interest when the money was putative to be idle. Idle money loses value over time especially when inflation irrupts,and so it is better to have your savings in some form of investment.

Technical analysis: Gold price forecast

Gold prices are trading on enchanted territory, a break below the ranging channel that we have seen for the past few days could see the price trading lower to $1600. The downward trend in the price is currently in pause, seeking some fundamental and technical momentum to push the price even lower. However the price could range for a whole month.

A positive correlation downward trend between bitcoin and gold will take shape in the coming quarters as investors move their portfolio positions into risky financial securities like equities. Safe-haven assets like bonds and bitcoin are over-valued compared to other financial securities.

Can I lose money while trading the financial markets?

Intellectually and logically, one has to consider the aleatory of losing money while trading the financial markets. When tradingthe financial markets one is actually in involution to the process of investing. Investing is a process of collocating capitalin an asset or security in trim of geniture to profits with the preceedes, however the process involves risky business. Risks that are involved embody geo-political/sovernty risk, market risk, credit risk, interest rate risk, financial settlement risk, and many more. Losing money on an investment is part and parcel of trading financial market instruments, however theaim is making profits on many investments and having less losing investments in a portfolio. A portfolio consists of x,y shares of a company, z bond investment and w commodity investment altogether as one during a particular time span. There are no risk-free investments in the capital and financial markets. If there is such a vasculum, it is called arbitrage infinancial terminology. Arbitrage is a case whereby investors are handed out free money at no investment risk. Although bond investments are considered risk-free investments, they aren't totally free from any risks. Bond investment risk is primarily the fluctuation in interest rates and the fact that bond trustees may default on their debt obligations.Well, yes one can lose money while trading the financial and capital markets, no sooner said than done.

Think financial settlement payment

Disbursing debt is dreadfully crucial to an individual’s personal finances. Fashioning more debts will not disentangle your borrowing glitches, it will only compose matters to the remorseful. Unscrambling your debt tribulations is quite uncomplicated, just pay you debts. However paying on a monthly basis will not affect your personal spending and custom of living too much. Consider your debts of obligations as monthly bills that requisite to be repaid every month of the year. It might be that chubby aggregate of debt troubling you; from that home loan, business loan or the financing of your vehicle. Even if the process is long, your balances due will decrease quite dramatically in the period of two to three years.

You can discontinue utilizing your credit card for your own benefit, if paying your debt obligations is a daunting task to fulfil. But afore executing that, pay your credit card obligations. You can use bond investments to borrow to others instead of you being the debtor all the time, by guilelessly buying bonds from your local bank and other financial institutions. Debt is a liability to your personal finance because it affects your future financial plans . As long as your personal debit is increasing relentlessly, then at some point you”ll not be able to pay your debt commitments and your future financial plans might be shattered to fragments.

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Technical analysis of the financial markets

Technical analysis is the procedure by which investors use charts and other tools to forecast financial instrument prices in order to spawn profit from the intended investment proceeds. Fundamental is additionally a branch used by investors to forecast financial instrument prices. Nonetheless in this article I will be discussing technical analysis solely. The most fundamental knowledge to forecasting financial instrument prices is through technical analysis, understanding and knowing the basic concepts of trend analysis. A trend is basically a theory that ascertains the fact that all financial instruments and derivative prices tend to trend in the same or opposite direction for a defined cycle of time and that this will depend on demand and supply. Using trend lines on a chart is perhaps the simplest method to determine the direction of a trend and a derivative price.

Other secondary mania factors to learn about technical analysis include, major chart patterns, Japanese candlesticks, time cycles, correlations, market profiling and technical indicators. This secondary things are also important however. I personally don’t adore technical analysis but it is part of my work to uncover security prices. I generally use fundamental analysis as a primary tool to forecast this prices. My point nonetheless is the fact that technical analysis is undeniably inevitable for financial markets analysts.

The primary thing for the technician to master is major trend chart patterns which can help you determine patterns that will follow in prices. This chart patterns are in the form of Japanese candle sticks rather than traditional bar charts and line charts, this form of charting has become the standard for analysing financial instruments. Using Japanese candlesticks to analyse financial instruments comes with advantages, such as being able see closing prices and opening prices for every minute and hour of the days. Time Cycles are the seasonal and cyclical occurrences that normally drive prices at certain degrees and directions. For example oil prices normally increase during winter time’s due to the cyclical demand for the commodity during the season. Correlations are the relationships between assets which are another way of determining future prices through technical analysis. This relationships can be test as positive or negative. Gold prices normally go in the opposite direction with stocks and bond yields. Markets profiling or a histogram/historical simulation is used most often by options trades, swing trades and day trades because of their short term length of investment. Most market profile’s for financial derivative are available on line for paid subscription. However you could learn to create your own. And lastly technical indicators are those indicators that use mathematical formulas and visual guides to help guide technical analysts determine the future price of financial instruments.

Alternative investments

One of a few challenges antagonising investment portfolios includes privation of diversification and insufficient sources of investment. Successful investment portfolios commonly have a historical characteristic of diversification. A diversified portfolio generally comprises of portfolio securities in alternative investments and assets which are or can be purchased in dissimilar parts of the global economy. When a portfolio is hedged, diversified sovereignty/geopolitical risk and other risk can be dodged.

According to the CFA Institute “alternative investments are investments with risk and return but are different from traditional investments like bonds and stocks” (2009). Modern alternative investments include Hedge funds, Managed Futures, Distressed securities, private equity commodities and real estate. These methods of investing are very modern and some do not have good sources of information for knowing about them in detail, but in this article I will try to explain how each investment method is practiced.

Real estate market- in short it is the acquisition of land and building which can then be sold and turned in to cash with profit, according to the CFA Institute “for centuries, individual investors have owned interests in real estate, primarily in the form of residential and agricultural properties” which are considered to be a store of value and wealth (2009). (CFA Institute, 2009) “Direct ownership includes investment in residences, business (commercial) real estate, and agricultural land”. Nonetheless to invest in the real estate market indirectly you need to invest in real estate investment, commingled real estate funds, buying equity of property companies and government infrastructure funds”.

Private equity/venture capital- This variety of investment is not accessible through brokers and stock exchanges, because most brokers trade on the behalf of those willing to buy publicly traded companies listed on stock exchanges. (CFA Institute, 2009) “Private equity is an ownership interest in a private (non-publicly-traded) company, companies whom have not applied for an IPO on a stock exchange”. According to the CFA Institution, “venture capital is the buyout of established companies via private equity funds known as buyout funds”(2009).

Commodities-(CFA Institute, 2009) “A commodity is a tangible asset that is typically relatively homogeneous in nature”.  Investment in publicly traded equity of commodity-linked businesses has probably been the most common approach for both individual and institutional investors to obtain exposure, albeit indirectly, to commodities. Only investment in commodities via cash and derivatives markets constitutes alternative investing.

Managed futures- According to the CFA Institute “managed futures are private pooled investment vehicles that can invest in cash, spot, and derivative markets for the benefit of their investors and have the ability to use leverage in a wide variety of trading strategies”. Managed futures programs are often structured as limited partnerships open only to accredited investors, institutions and high-net-worth individuals.

Distressed securities- According to the CFA Institute “distressed securities are securities of companies that are in financial distress or near bankruptcy” (2009). Investment strategies using destressed securities exploit the fact that many investors are unable to hold below-investment-grade securities because of regulatory or investment policy restrictions. I have personally written a book on distressed securities myself. The title of the book is call “Bear market trading strategy: a definitive guide to trading distressed securities” which goes into much detail about the trading strategy and method of alternative investing. It is available on Amazon for purchase, you can also click the menu button on your top right, then click my books to check some of my book releases.

However you can also exploit investing in these alternative investments by opening a trading account which can let you hold positions in forex, commodities, stocks, cryptocurrencies and metals by clicking the banner below…..

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References
CFA Institute.2009. Portfolio management study session 13-15 volume 5

Accessing finance documents and books for free

Unearthing good finance books can be quite arduous, you can read books for free by simply downloading a smartphone application Kindle Unlimited that can let you read thousands if not millions of books for free, carrying this mobile application is the off chance that you may continue reading a novel or that finance book that you have always wanted to read. It is for this reason that Amazon has the kindle reading App for IPhone, Blackberry, Windows phones and Android for free.

However for an investor there are always economic reports published for free by banking and financial institutions every quarter of the year. In the case of a stock market investor, companies also regularly publish annual and quarterly reports. Another yet simple method to obtaining finance books and documents for free is through the public domain, the public domain comprises books and documents for which its authors do not claim ownership rights. So in this case they are free of charge to the public. Many of this public domain documents and books are available on the internet and public libraries. 

How to invest in bitcoin

Bitcoin has turned out to be one of a limited trending financial instruments that investors have ensuing to compart in their portfolios recently, the price and value rally in bitcoin has probably caused the great euphoria in the area of cryptocurrencies. Another well know cryptocurrency is Webmoney which is considered by some to be safe because its transactions are traceable. However bitcoin transactions cannot be traced and cannot be reversed because it is totally decentralized. You can hold bitcoins with your e-mail account, through this procedure one depends on the security for which his or her bitcoins are hosted.

Another way to hold bitcoin assets is through a broker, today many brokers are offering the ability to trade and hold bitcoins. It is safer to have bitcoins through a broker, if your money is somehow hacked or something goes wrong on a server for which your bitcoins are held, you have the legal right to get claims from your broker. Since 1996 when cryptocurrencies were first ever introduced, they have however been under great scrutiny and legal litigations. Bitcoin is decentralized and cannot be litigated or scrutinized. To open an account with a trusted broker to hold bitcoins, you can click on the menu button on your top right and visit my home page where you can begin to register, trade and hold bitcoin investments.

Exchange traded fund

What is an Exchange traded fund? It basically embroils the exchange of currencies by two parties, it is essentially a currency swap. A currency swap is analogous to the foreign exchange market activities. In simple terms it engrosses two parties exchanging currencies, one party has to hold for the risk of his or her currency value depreciating while the other parties currency value increases.

For instance in the case of a foreign student studying In the United States in order for him or her to transfer his or her U.S dollar in to Chinese Yen when returning home to China, he or she has to find a party who holds Yens willing to buy dollars with those proceeds, it could be an investor or similarly a foreign student from the United States willing to buy Dollars for his or her return home. Since currency values fluctuate, one party’s currency value could decrease while the other party’s value increases, it is for this fundamental reason that the foreign exchange market operates.

Coronavirus vaccine passport in the world of finance!

There are some rumours regarding coronavirus vaccination passport, as a new way of travelling from place to place. Quite an ord unreality. The case would however benefit the global economy, because the quicker we return to normal, the better chances that we don’t go into a global recession.

Despite the fact that covid-19 remains a risk to the global financial market, i am still optimistic that the third quarter of the year will bring some support and recovery. Today the S&P 500, Dow Jones, Nasdaq and bond yield have been rallying, a positive correlation hinting to the recovery of the stock market in general as vaccination rollout continues globally.